Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. New Palace International Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$56 Mil. New Palace International Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-4 Mil.
New Palace International Co's interest coverage for the quarter that ended in Dec. 2025 was 12.93.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. New Palace International Co Ltd interest coverage is 4.17, which is low.
The historical rank and industry rank for New Palace International Co's Interest Coverage or its related term are showing as below:
TPE:8940'
s Interest Coverage Range Over the Past 10 Years
Min: 0.16 Med: 4.51 Max: 10.09
Current: 4.17
TPE:8940's Interest Coverage is ranked worse than 61.07% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs TPE:8940: 4.17
New Palace International Co (TPE:8940) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
New Palace International Co Interest Coverage Related Terms
New Palace International Co Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
New Palace International Co Interest Coverage Chart
TPE:8940 vs MCD, SBUX, YUM: Interest Coverage Comparison
For the Restaurants subindustry, New Palace International Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
New Palace International Co Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, New Palace International Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where New Palace International Co's Interest Coverage falls into.
New Palace International Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
New Palace International Co (TPE:8940) has a Interest Coverage of 12.93 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on New Palace International Co and its competitors. This is 187% above median its historical median of 4.51. Over the past decade, New Palace International Co's Interest Coverage has ranged from 0.16 to 10.09. According to the industry distribution chart, New Palace International Co ranks #160 out of 262 companies in the Restaurants industry, placing it in the top 61.1%.
Is New Palace International Co's Interest Coverage too high?
New Palace International Co's current Interest Coverage of 12.93 is 187% above median its 10-year median of 4.51. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 10.09. The Restaurants industry median Interest Coverage is 6.45. New Palace International Co's value of 12.93 is 100.5% above this industry median. Based on the distribution chart, New Palace International Co ranks #160 out of 262 companies in the Restaurants industry, which is below the industry midpoint. Overall, New Palace International Co has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New Palace International Co's Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, New Palace International Co ranks #160 out of 262 companies for Interest Coverage. This places New Palace International Co in the lower half of its industry. The industry median Interest Coverage is 6.45. New Palace International Co's value of 12.93 is 100.5% above this benchmark. Historically, New Palace International Co's own Interest Coverage has ranged from 0.16 to 10.09 over the past decade. While the company's 10-year median is 4.51 vs. the industry median of 6.45, New Palace International Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. New Palace International Co's current Interest Coverage of 12.93 is 100.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on New Palace International Co and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Palace International Co's current Interest Coverage is 12.93, which is 187% above median its own 10-year median of 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Palace International Co stock overvalued right now?
Based on GuruFocus' analysis, New Palace International Co (TPE:8940) is currently considered Possible Value Trap. The stock's GF Value™ is NT$25.22, compared to a current price of NT$16.35 — trading 35.2% below its estimated fair value. The current Interest Coverage is 12.93, which is 187% above median its 10-year median of 4.51 and 100.5% above the Restaurants industry median of 6.45. New Palace International Co's overall GF Score™ is 77/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For New Palace International Co (TPE:8940), the current Interest Coverage is 12.93 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is New Palace International Co (TPE:8940) Overvalued in 2026?
Based on GuruFocus' analysis, New Palace International Co stock appears to be undervalued.
The current stock price of NT$16.35 is trading 35.2% below its estimated GF Value™ of NT$25.22.
GuruFocus considers New Palace International Co to be Possible Value Trap.
Key valuation signals for TPE:8940:
Interest Coverage: 12.93 (187% above median its 10-year median of 4.51)
GF Value™: NT$25.22 vs. price of NT$16.35 (35.2% below fair value)
Industry Position: 100.5% above the Restaurants median (#160 of 262)
No single metric tells the full story. See the TPE:8940 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Palace International Co Ltd is a Taiwan-based company engaged in the catering industry. Its products and services include the provision of traditional catering services, banquets, and buffets. The company generates the majority of its revenue from Chinese banquet catering, and a small portion of revenue is derived from Other catering services.
77GF Score
Get the complete analysis for TPE:8940
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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